Experts’ Awards and Economic Success: Evidence from an Italian Literary Prize
AbstractProduct quality is often unobservable ex-ante and consumers rely on experts’ judgments, sometimes coming under the form of ratings or awards. Do awards affect consumers’ choices or they are conferred to the most popular products? To disentangle this issue, we use data of the most important Italian Literary Prize, the “Strega Prize”, undertaking two different estimation strategies to evaluate the impact on book sales of being awarded the Prize. First, we adopt a Regression Discontinuity Design using as dependent variable a measure of book sales and as forcing variable (proxying for intrinsic book quality) the jury votes received by each nominated book in the competition. We find a very strong impact of the Strega Prize on sales. Second, using weekly data on appearances in bestseller lists, we estimate a difference-in-differences model, comparing sales performance of treated and control books before the award is conferred with their respective performance afterwards. The results confirm a huge influence of the Prize on book sales and show that most of the impact occurs in the weeks following the announcement.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 335.
Date of creation: 27 Jun 2013
Date of revision:
Cultural Economics; Awards; Literary Prize; Book Sales; Product Quality; Regression Discontinuity Design; Difference-in-Differences model.;
Other versions of this item:
- Michela Ponzo & Vincenzo Scoppa, 2013. "Experts’ Awards And Economic Success: Evidence From An Italian Literary Prize," Working Papers 201306, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
- Z10 - Other Special Topics - - Cultural Economics - - - General
- Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L80 - Industrial Organization - - Industry Studies: Services - - - General
- M30 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - General
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
- NEP-CUL-2013-07-15 (Cultural Economics)
- NEP-HRM-2013-07-15 (Human Capital & Human Resource Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James Hilger & Greg Rafert & Sofia Villas-Boas, 2011.
"Expert Opinion and the Demand for Experience Goods: An Experimental Approach in the Retail Wine Market,"
The Review of Economics and Statistics,
MIT Press, vol. 93(4), pages 1289-1296, November.
- Hilger, James & Rafert, Greg & Villas-Boas, Sofia B, 2011. "Expert Opinion and the Demand for Experience Goods: An Experimental Approach in the Retail Wine Market," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt4nc7h417, Department of Agricultural & Resource Economics, UC Berkeley.
- Hilger, James & Rafert, Greg & Villas-Boas, Sofia B, 2009. "Expert Opinion and the Demand for Experience Goods : an experimental approach in the retail wine market," CUDARE Working Paper Series 1049, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Victor Ginsburgh, 2003.
"Awards, success and aesthetic quality in the arts,"
ULB Institutional Repository
2013/1679, ULB -- Universite Libre de Bruxelles.
- GINSBURGH, Victor & VAN OURS, Jan C., .
"Expert opinion and compensation: evidence from a musical competition,"
CORE Discussion Papers RP
-1617, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Victor A. Ginsburgh & Jan C. van Ours, 2003. "Expert Opinion and Compensation: Evidence from a Musical Competition," American Economic Review, American Economic Association, vol. 93(1), pages 289-296, March.
- Victor Ginsburgh & Jan van Ours, 2003. "Expert opinion and compensation: evidence from a musical competition," ULB Institutional Repository 2013/1681, ULB -- Universite Libre de Bruxelles.
- GINSBURGH, Victor & van OURS, Jan, 2002. "Expert opinion and compensation: evidence from a musical competition," CORE Discussion Papers 2002033, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- David A. Reinstein & Christopher M. Snyder, 2005. "THE INFLUENCE OF EXPERT REVIEWS ON CONSUMER DEMAND FOR EXPERIENCE GOODS: A CASE STUDY OF MOVIE CRITICS -super-* ," Journal of Industrial Economics, Wiley Blackwell, vol. 53(1), pages 27-51, 03.
- Caroline Elliott & Rob Simmons, 2008. "Determinants of UK Box Office Success: The Impact of Quality Signals," Review of Industrial Organization, Springer, vol. 33(2), pages 93-111, September.
- Hadj Ali H. & Lecocq S. & Visser M., 2007.
"The impact of gurus: Parker grades and en primeur wine prices¤,"
Working Papers ERMES
0718, ERMES, University Paris 2.
- HélaHadj Ali & Sébastien Lecocq & Michael Visser, 2008. "The Impact of Gurus: Parker Grades and "En Primeur" Wine Prices," Economic Journal, Royal Economic Society, vol. 118(529), pages F158-F173, 06.
- Ali, Hela Hadj & Lecocq, Sebastien & Visser, Michael, 2007. "The Impact of Gurus: Parker Grades and EN PRIMEUR Wine Prices," Working Papers 37292, American Association of Wine Economists.
- Héla Hadj Ali & Sébastien Lecocq & Michael Visser, 2005. "The impact of gurus : Parker grades and en primeur wine prices," Research Unit Working Papers 0507, Laboratoire d'Economie Appliquee, INRA.
- Guido Imbens & Thomas Lemieux, 2007.
"Regression Discontinuity Designs: A Guide to Practice,"
NBER Working Papers
13039, National Bureau of Economic Research, Inc.
- Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
- Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Technical Working Papers 0337, National Bureau of Economic Research, Inc.
- Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
- Eva Deuchert & Kossi Adjamah & Florian Pauly, 2005. "For Oscar Glory Or Oscar Money?," Journal of Cultural Economics, Springer, vol. 29(3), pages 159-176, August.
- Richard Friberg & Erik Gr�nqvist, 2012. "Do Expert Reviews Affect the Demand for Wine?," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 193-211, January.
- Jonah Berger & Alan T. Sorensen & Scott J. Rasmussen, 2010. "Positive Effects of Negative Publicity: When Negative Reviews Increase Sales," Marketing Science, INFORMS, vol. 29(5), pages 815-827, 09-10.
- Lee, David S., 2008. "Randomized experiments from non-random selection in U.S. House elections," Journal of Econometrics, Elsevier, vol. 142(2), pages 675-697, February.
- Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lia Ambrosio).
If references are entirely missing, you can add them using this form.